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Update: the effect of the financial crisis on the fresh fruit and vegetables sector

The economic crisis has a profound impact on the fresh fruit and vegetables sector. Exporters from developing countries are under particularly great pressure. On the one hand because importers in Europe are using their market power to reduce prices, and on the other hand because supermarkets are gradually increasing their quality and volume requirements. Furthermore, the crisis is causing consumers to shift from luxury to more basic products, so the producers of more expensive exotic fruit and vegetables will be hit by the crisis even more. However, the sustainability trend tends to increase the demand for organic products, so this might provide some perspective in the sector. Diversification of the companies’ sales markets may also provide an escape for companies facing a decreasing demand. This sector alert talks about the implications of these developments and makes recommendations on the basis of them.

Publication date: July, 2009

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Fresh Fruit and Vegetables

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